Breakfast Blog: Morning Update

This week to date we have seen a continuation of the upward momentum across the board, on the economic front markets have received support from Spanish bailout rumours and stronger then expected data out of the US. All eyes today will be on the EU summit, we are not expecting anything major to be released but any further mention of Spanish bailout or an update from Greece could steer the market higher. Overnight we have seen data from China showing the economy slowed for a seventh straight quarter in July-September, missing the government's target for the first time since the depths of the global financial crisis. The Chinese have supported the data stating that 'This is within expectations, the economy is showing signs of stabilizing, that is good news', traders will look to the market reaction for a more clear view on the stability of the chinese economy.
In terms of levels we need to be aware of today, SPX levels on the upside (Yst Highs 1463, Sept Highs 1474), DowJ ( Yst Highs 13,563, Sept Highs 13,662 and downside support at 13,492).
Although market sentiment has remained bullish throughout the course of the week, we need to keep in mind that a correction could take place before the christmas rally begins.

Happy Trading